Your business address may be more than a mere location; it could also be a valuable certification. A company located in a qualified census tract may qualify for the HUBZone Program.
The HUBZone Program is regulated by the U.S. Small Business Administration (SBA) and was enacted into law as part of the Small Business Re-authorization Act of 1997. This program is separate from and unaffiliated with the HUB certification administered by the state of Texas.
The HUBZone Program provides greater federal contracting opportunities for qualified small businesses located in distressed areas, for the purposes of encouraging employment growth and economic development.
According to the White House Budget Office, the federal government spent $3.5 trillion in 2010. Since each federal agency has a statutory goal of spending a minimum of 3% of their federal procurement dollars with HUBZone small businesses, this could add up to huge business opportunities.
The qualifications are straightforward. To be eligible for the HUBZone Program, a company must meet all of the following criteria:
- Must be a small business by SBA standards.
- Must be located in a “historically underutilized business zone.”
- Must be 51% owned and controlled by one or more U.S. citizens.
- At least 35% of its employees must reside within a HUBZone.
SBA has developed special mapping software to determine if a specific location is in a qualified HUBZone area. Visit www.sba,gov/hubzone and enter the street address, city, state, and zip code of the location being researched. It is important to enter the address exactly as shown on SBA’s census map.
If you are interested in learning more about leasing space in a HUBZone area, call LEAD 2 GREEN today.
Connie Rankin, President
LEAD 2 GREEN
Commercial Real Estate Company
The Author, Connie Rankin, is the President and Broker of LEAD 2 GREEN (previously known as Customized Real Estate Services, Inc.), a full services green commercial real estate firm helping companies make informed commercial real estate decisions.